SPOKANE, Wash. — Voters in Washington are being swarmed with advertisements about Initiative 645, which would repeal the state’s millionaire’s tax passed by the legislature.
The tax itself would begin in 2028 and put a nearly 10% tax on personal income over $1 million.
Ads calling for voters to approve the initiative say the millionaires tax eliminates tax exemptions on pensions, but looking at the actual bill, there’s much more that needs to be unpacked.
One ad pushing for a yes vote features a fire chief expressing concern over his pension.
“The state made first responders a promise: our retirement benefits would be protected from taxes,” the ad said. “This year, Olympia broke that promise. One sentence buried in the income tax bill.”
The sentence the ad refers to is there and says pensions are not exempt from tax. The only people impacted, however, are those drawing a pension and who also have a separate income totaling more than $1 million a year.
Let’s Go Washington, which led the charge to repeal the millionaire’s tax, argues letting the tax go through opens those pensions to being taxed in the future if legislators voted to drop the threshold of people being taxed.
“If there’s no intention to bring this number down from a million dollars, why did you go in and specifically unlock all the public pensions?” asked Brian Heywood with Let’s Go Washington.
Opponents of initiative 645 say the ad is misleading and won’t be lowered to affect the working class.
“This is completely outlandish and ridiculous and a fear tactic to distract from the purpose of the millionaire’s tax,” said Sen. Marcus Riccelli. “If you’re not making over $80,000 a month, this will not impact you.”
Ads calling for voters to oppose the initiative say repealing the tax could lead to major budget shortfalls.
“645 means $13 billion in cuts, threatening healthcare for tens of thousands,” the ad says.
Critics point out that they $13 billion discussed in this ad isn’t being cut from an existing budget but rather an estimated $13 billion in future tax funds that will not be raised if the millionaires tax is released.
Heywood fears the millionaires tax could eventually become an income tax for everyone in the state. The other side argues that keeping the tax ensures the wealthy pay their fair share.
I-645 will be on the ballots that will be starting to be sent out of Spokane County on Thursday.
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